First Duplex/House Hack

[Nikola Dokic]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $600,000
Cash invested: $90,000

Purchased a duplex in the Sacramento Area, currently living in one side and renting out the other

What made you interested in investing in this type of deal?

Wanted something that will get me decent cash flow and also is in a good area that will appreciate over time

How did you find this deal and how did you negotiate it?

On Redfin, my agent negotiated all closing costs to be paid by the seller (which was very rare in 2021)

How did you finance this deal?

Conventional 15% down, single premium PMI payment

How did you add value to the deal?

Upgraded unit I am living in, planning on remodeling the other side once tenant moves out

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Worked with a local agent I was recommended to, nothing but positive experience

Name of agent: Nelson Lund

[Vincent Vazquez]

Originally posted by @Nikola Dokic:

Originally posted by @Vincent Vazquez:

Thank for posting! Are you breaking even with the rental income?

For right now it's covering a portion of my mortgage, I inherited a tenant as a part of the deal and she will be moving out this May.

Plan is to bump the rent to around $1900 a month so it covers more than half of the mortgage (which is at $2990)

Once I move out and have both units rented, combined rents will be pulling in about $3900 per month.

As a complete newbie, I was just so excited to finally but something that I did not do much analysis on the deal, but I plan on holding it for a long time and having it pay for itself.

 I found BP recently so now I am catching up on the knowledge!

 That is awesome, even covering a portion of your mortgage is a blessing. It sounds like you're all set for a positive cash flow once you move out and have both tenants paying the market rate. That's fantastic, congratulations! You are on your way to growing an attractive portfolio.